IRD website - Sri Lanka >> Tax Rates

FIRST SCHEDULE

Rates of Income Tax-Individuals other than any Receivers, Trustees, Executors or Liquidators

PART I

Any Individual other than an individual referred to in Part II or Part III
For any year of assessment ending on or before March 31, 2009, any individual other than an individual referred to in Part II or Part III

On the first Rs.300,000 of the taxable income
On the next Rs.200,000 of the taxable income
On the next Rs.200,000 of the taxable income
On the next Rs.200,000 of the taxable income
On the next Rs.200,000 of the taxable income
On the next 500,000 of the taxable income
On the balance taxable income
05 per centum
10 per centum
15 per centum
20 per centum
25 per centum
30 per centum
35per centum

PART 1 A

For any year of assessment commencing on or after April 1, 2009, any individual other than an individual referred to in
Part II or Part III

On the first Rs. 400,000 of the taxable income
On the next Rs. 400,000 of the taxable income
On the next Rs. 400,000 of the taxable income
On the next Rs. 500,000 of the taxable income
On the next Rs. 500,000 of the taxable income
On the next Rs. 500,000 of the taxable income
On the balance of the taxable income
05 per centum
10 per centum
15 per centum
20 per centum
25 per centum
30 per centum
35per centum

PART II

Any individual who is not a citizen of Sri Lanka and who is deemed under subsection (7) of section 79 to be non resident, during the period for which such individual is deemed non-resident.

On the taxable income - 15 per centum

PART III

Any individual who is not a citizen of Sri Lanka and who is referred to in subsection (1) of section 40, for the period of two years referred to therein, or referred to in subsection (2) of section 40 for the period of five years referred to therein.

On the taxable income - 20 per centum

PART IV

The rates of income tax applicable to certain profits from employment specified in subsection (2) of section 35.

(a) For the year of assessment commencing on April 1, 2006-
Where the period of contribution or the period of service, as the case may be, in relation to the excess referred to in subsection (2) of section 35 (other than any sum referred to in the proviso to that subsection) is less than 20 years.

on the first Rs. 1,000,000 of the sum received NIL

Where the period of contribution or the period of service, as the case may be, in relation to the excess referred to in subsection (2) of section 35 (other than any sum referred to in the proviso to that subsection) is not less than 20 years.

on the first Rs. 2,000,000 of the sum received NIL

on the next Rs. 500,000
on the next Rs. 500,000
on the balance
5 per centum
10 per centum
15 per centum

(b) For any year of assessment commencing on or after April 1, 2007-
Where the period of contribution or the period of service, as the case may be, in relation to the excess referred to in subsection (2) of section 35 (other than any sum referred to in the proviso to that subsection) is less than 20 years.

on the first Rs. 2,000.000
on the next Rs. 1,000,000
on the balance
NIL
5 per centum
10 per centum

Where the period of contribution or the period of service, as the case may be, in relation to the excess referred to in subsection (2) of section 35 (other than any sum referred to in the proviso to that subsection) is not less than 20 years.

on the first Rs. 5,000,000
on the next Rs. 1,000,000
on the balance
NIL
5 per centum
10 per centum.

PART V

The rate of income tax applicable to any sum referred to in the proviso to subsection
(2) of section 35
as per Part I, but subject to a
maximum of 20 per centum.

 

SECOND SCHEDULE

Rates of Income Tax-Companies

PART - A

1. Any venture capital company-on the taxable income for every year of assessment commencing on or after April 1, 2006. 20 per centum

 

2. Any unit trust or mutual fund—
(a) For the year of assessment commencing on April 1, 2006—

(i) on such part of the taxable income as is referred to in sub section (4) of section 75 ;

(ii) on the balance part of the taxable income;

(b) For any year of assessment commencing on or after April 1, 2007—

on the taxable income

 


10 per centum

20 per centum

 

10 per centum

PART - B

1. (a) For the year of assessment commencing on April 1, 2006—

Any company other than a company referred to in PART A and of which the taxable income does not exceed Rs. 5,000,000.

(b) For any year of assessment commencing on or after April 1, 2007—
any Company—

(A) (i) of which the taxable income does not exceed Rs. 5,000,000 ;

      (ii) which is not a c o m p a n y referred to in PART A ; and

(B) which is not the holding company, a subsidiary company, or an associate company of a group of companies. on the taxable income.

For the purpose of item(B), the expressions “holding company”,“subsidiary company”, and, “group of companies” shall have the same respective meanings which they have in the Companies Act,
No.7 of 2007.

2. Any company for the year of assessment in which its shares are first quoted in any official list published by a stock exchange licensed by the Securities and Exchange Commission of Sri Lanka, (hereinafter referred to as the “first year of assessment”) and for each year of assessment within the period of four years immediately succeeding that first year of assessment, for which the taxable income exceeds Rs. 5,000,000/- or if such company is a holding company, a subsidiary company or an associated company of a group of companies-

on the taxable income for that year of assessment

Provided that where such first year of assessment is any year of assessment which commences prior to April 1, 2006, the rate of 33 1/3 per centum shall apply in relation to any year of assessment which falls within such period of four years, but which commences on or after April
1, 2006

3. Any company other than any company herein before referred to in this Schedule, for any year of assessment—

on the taxable income for that year of assessment

4. Where the taxable income of any company for any year of assessment exceeds five million rupees, then such part of the tax computed in accordance with this Act, as being payable by such company for such year of assessment as is attributable to such excess, shall not be more
than such excess.

 

15 per centum

 

 

 

 

15 per centum

 

 

 

 

 

33 1/3 per centum

 

 

 


35 per centum

 

THIRD SCHEDULE

Rates of Income Tax - Persons Other than Individuals to whom the First Schedule Applies, and Companies

1. Hindu undivided families

2. Charitable Institutions(including corporate bodies)

3. Executor (other than trustees under last wills) and receivers (other than liquidators)

4. Trustees (including trustees under last wills)

5. Partnerships

6. Partnerships (on any assessment made)

7. Any Co-operative Society registered or deemed to be registered under the Co-operative Societies Law No.5 of 1972 On the taxable income

Any society registered or deemed to be registered as a registered society under the Cooperative Societies Law, No. 5 of 1972.

On the taxable income for any year of assessment ending on or before March 31, 2008 or commencing on or after April 1, 2013

8. Any club or association referred to in section 101 On the taxable income

9. Mutual life assurance companies

10. Liquidators of companies


11. Governments (other than the Government of Sri Lanka and the Government of the United
Kingdom)

12. Business undertakings vested in the Government under the Business Undertakings (Acquisition)
Act No.35 of 1971—

(i) On the taxable income

(ii) On the balance of the profits after deduction there from of the tax payable under paragraph
(i)

13. Employees Trust Fund and Provident or Pension Funds

14. Any thrift, saving or building society or welfare fund to which contributions are made by
employees only or any gratuity funds approved for the purpose of section 25 (1) (o)

15. Persons (other than those referred to above and in the First and the Second Schedules)

30 per centum

10 per centum

30 per centum

30 per centum

30 per centum

30 per centum

5 per centum

 



5 per centum


20 per centum

20 per centum

The rate of tax chargeable in respect of the company concerned

30 per centum

 

 


30 per centum


25 per centum


10 per centum


10 per centum



30 per centum


 

 

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